Govt to study which Filipinos-only investment areas can be opened to foreigners

The Department of Finance, the National Economic and Development Authority, and the Department of Trade and Industry will review the Regular Foreign Investment Negative List to determine which investment areas and activities reserved for Filipinos could be opened to foreign investors. "The review of the FINL is an ongoing process. Once we finish consultations with stakeholders, we will present results to the President," Finance Secretary Cesar Purisima said on Tuesday. According to the DTI, the contents of the FINL are classified into two categories:

List A - consists of areas of activities reserved to Philippine nationals where foreign equity participation in any domestic or export enterprise engaged in any activity listed therein shall be limited to a maximum of 40 percent as prescribed by the Constitution and other specific laws; and List B - consists of areas of activities where foreign ownership is limited pursuant to law such as defense or law enforcement-related activities, which have negative implications on public health and morals, and small and medium-scale enterprises.

According to Republic Act 7042, 100-percent foreign ownership is allowed in areas and activities not included on the FINL. However, said Purisima, only the items established by executive order or legislation will be examined. "We will not be reviewing lifting economic restrictions in the constitution. That is currently off the table,” he said. "With ASEAN integration on the horizon in 2015, we need to maintain and enhance the competitiveness of key professions and industries to ensure that we reap the full benefits of economic integration in the ASEAN," said NEDA Director General Arsenio Balisacan. "Limiting the items on the FINL will allow the Philippines to be more connected to the global economy, which will result in more business and employment for Filipinos," said Purisima. It would be "a crucial step," said Trade Secretary Gregory Domingo, "to attract more foreign investments that will create more quality jobs for our people and strengthen our country’s trade negotiations strategy." NEDA and the two Departments will being consultations with different stakeholders such as national government agencies, the private sector, and lawmakers on the possibility of shortening the FINL. The FINL is updated every two years, with the most recent version promulgated in October 2012. — BM, GMA News